To waive, or not to waive? That was the question pondered by Erin councillors at its committee of the whole session on Feb. 29.
Mayor Lou Maieron alluded to a meeting with residents and property owners from downtown Hillsburgh the previous week. “There was some talk about amending or deleting the hookup fees.”
The town’s plan is to bring water lines into Hillsburgh from Mill Street along Trafalgar Road (the main street in the town) north to the Exchange Hotel building, which requires a source of town water because it is being converted into condos. That gives the town an opportunity to bring the area onto town water.
Maieron said he had an update regarding costs involved to decommission wells and what that entails. He said Wellington County recently agreed to place $25,000 into the rural water quality program – for urban decommissioning [rural but non farm properties].
He said of non-farm properties last year, 19 wells were decommissioned at an average cost of $1,534.
Maieron added the program is a 100% grant, to a maximum of $2,500, and suggested if urban wells cost similar to rural wells, probably 16 could be decommissioned in Erin’s settlement areas. If the decommissioning costs are lower, more wells could be done.
“It’s generous of the county to do 100% grants,” said councillor Barb Tocher.
Maieron said it is not the county directly, but the Rural Water Quality Program, although the county has provided the additional funds. He said the money is not just for Erin but for the whole county.
Erin’s proposed bylaw for the water supply could bring a special area rating for some property owners along Trafalgar Road.
Maieron said options include full cost servicing, or one that would possibly eliminate or rebate the hookup fee when the well decommissioning is done.
Councillor John Brennan said it seems to him looking at where infrastructure already exists, somebody already paid for it at one point.
However, in this case, Brennan said the property owners would be paying for the infrastructure. He suggested an agreement for a special area rating to cover installation costs and then charging connection fees would be, in effect, charging residents twice.
Maieron said the connection fee covers more costs than simply to hook onto the water service line. It includes such things as a tower, pumps, wells and everything else.
Water superintendent Frank Smedley said the property owners would be assisting to expand the water system, which, in turn, will allow more residents to connect.
“One of the best ways in the long term, to reduce further increases, is to get as many people as possible on board to the existing [water] system using the existing infrastructure. It will make the water system a lot stronger over the long term.”
Tocher asked that the current discussion be limited to the special area rating in Hillsburgh – not all infilling in Erin.
She believes the approach in downtown Hillsburgh is a win-win, because the area rating would be used to purchase the infrastructure.
“I think this is a way to ensure that these homeowners [and] business owners have safe drinking water. I don’t know if anyone can guarantee that at the present time.”
As a result of Erin’s water studies, Maieron said rates were raised by 20% to cover shortages in the water budget. Those were a result of being unable keep up with improvement costs and having to dip into reserves.
“As much as I would like to see people hook up … They may have to pay the hookup charges.”
He said proposals to waive hookup fees would sending Erin down “a slippery slope.”
He suggested council review the rates study it paid for. “I certainly don’t want to be making decisions based on wiggle room and loopholes, and then have to defend them to the next person who comes forward” who would want fees waived.
Smedley said the water rates study did not take into account the Trafalgar Road development in Hillsburgh.
Maieron said he would love to see more people hooked into the water system. “If you don’t fund your infrastructure, come down the line, you’ll have to increase rates even more.”
Tocher said, “We’re getting $120,000 worth of infrastructure paid for” through the area rating charges.”
Planner Sally Stull said without the lines in place, the municipality would not get connection fees. In addition, the water rates include amounts to cover upgrades to the water system.
Tocher said if one is connecting to existing infrastructure there is a bit of back cost, because someone has already paid to have that infrastructure in place.
Maieron wanted to know how to deal with the 109 properties in Erin where there is a water main in front of the property. He asked the difference between that and a developer coming in.
Smedley said it is a very different situation for a developer, who makes money off the sale of the lots, compared to existing property owners facing a fee to upgrade their properties with municipal water.
Maieron said those homes are worth more for resale if they are connected to municipal water.
Smedley said “If we want to bring urban servicing to the residents of Erin and Hillsburgh who currently don’t have it, we’re going to have to be as creative as possible in bringing these people on board, because we typically do not have a mandatory structure and homeowners are not typically there as a business to make money.”
Even in the future, if council wants to service all of the main street in Hillsburgh, “We will be looking at all options to make the project as feasible as possible.”
Even if precedent were set, Smedley said it would only make sense to take an approach similar to that in a similar circumstances.
Tocher believes the move is not setting a precedent because the action is site specific. She said council would make a decision based on what it believes is appropriate at the time. “I think this a good deal for the homeowners either way,” she said.
Based on previous information presented to council, she did not believe there were many properties in that section of Hillsburgh that can sustain wells or septic systems because of the closeness of other wells and septic systems near the main street.
“I think this is just a win-win for the town.”
Maieron said once certain decisions are set “They do come back and set a template of how you are going to move forward. If you do it for one, the general rule is that you do it for all.”
